Qantas, hit by pandemic, weighs new pay structure to keep top executives
SYDNEY (Reuters) – Qantas Airways Ltd said on Friday it was considering new ways to structure compensation to ensure it could retain key executives as it enters the third fiscal year affected by the travel slowdown caused by the pandemic.
Qantas Chairman Richard Goyder said executives have faced a high workload with no annual bonuses over the past two years and a continued salary freeze at a time of increasing attrition across the company Aerial.
“Our executive cohorts are talented and in growing demand across a wide range of industries, many of which, unlike aviation and tourism, are experiencing high growth and activity rates, with financial rewards to match.” , he said in the airline’s annual report.
In the case of CEO Alan Joyce and senior management, any incentive plan would replace the traditional annual bonus plan, Goyder said, adding that a decision was expected in the second half of the year.
Joyce’s total annual salary rose to A $ 1.97 million ($ 1.44 million) in the 12 months ended June 30, up 13% from the previous year when he had taken a zero-based pay period, but his pay remained 80% lower than before COVID. levels.
Joyce said he expects to stay in his post until at least July 2023 to complete a three-year stimulus package designed to cut ongoing annual costs of A $ 1 billion.
In a separate memo to staff seen by Reuters, Goyder said the company would seek to reward all employees if the stimulus package is completed by that date.
“Nothing is finalized but we look forward to sharing more details in the first quarter of next year,” he said.
Other companies in the travel industry, including Flight Center Travel Group Ltd and Air New Zealand Ltd, have offered shares to all employees as part of the retention efforts.
($ 1 = AU $ 1.3689)
(Reporting by Jamie Freed. Editing by Gerry Doyle)